EMI post losses of £1.5 billion.

Dimrill · **Posted:** Thu Feb 04, 2010 22:09

The end is nigh? http://news.sky.com/skynews/Home/Music- ... ncial_Year

Quote:

The loss follows the take-over of EMI by private equity tycoon Guy Hands three years ago, said Kleinman.

"He paid about £3bn for EMI and since then it's struggled particularly because of the conditions afflicting the music industry but also he has struggled to come to terms with the company's vast cost base," Kleinman said.

A report in the FT this morning claimed Mr Hands will have to ask investors in his Terra Firma private equity group to inject another £100m so it can meet the terms of Citigroup's loans from earlier this year, largely because of EMI's failings.

"Guy Hands is taking legal action against Citigroup alleging he was misled during the sale process, so we have a pretty explosive situation here and then this loss will really shake those taking an interest in the company's future," said Kleinman.

Doesn't look good.

GovernmentYard · **Joined:** 30th Mar, 2008 **Posts:** 5318

MY SIDES!

Plissken · **Posted:** Thu Feb 04, 2010 22:38

So in summary, man buys company in an industry that he hasn't the first fucking clue how to operate and then wonders why it has all gone tits up.

throughsilver · **Joined:** 30th Mar, 2008 **Posts:** 6197

Not even endless Maiden reissues can save them now...

LewieP · **Joined:** 29th Apr, 2008 **Posts:** 7600

Is this a bad thing in any way?

Malc74 · **Posted:** Thu Feb 04, 2010 23:18

Quote:

"Guy Hands is taking legal action against Citigroup alleging he was misled during the sale process.

"But Your Honour, they didn't tell me businesses could lose money!"

Malabelm · **Posted:** Thu Feb 04, 2010 23:18

Plissken wrote:

So in summary, man buys company in an industry that he hasn't the first fucking clue how to operate and then wonders why it has all gone tits up, then tries to sue his way out.

Fixed for you.

NervousPete · **Posted:** Thu Feb 04, 2010 23:33

*Tries to suppress wholesome mirth* What the fuck was he thinking? Hasn't he read any forums lately?

Over the next ten years I think each and everyone of these mega-global music arms are slowly going to tank in turn, then the genuinely independent small record groups will rise up. A few will become big again, but never to the same obscene size. Musicians will have to get used to a lower paid life and will have to rely on fan loyalty and tours to make money - which is easy if they're any good, they just have to downgrade financial expectations accordingly and start living like humans without costly management. This is my utopia.

People who love music will always make music. I can't see anything wrong here, though I do hope they don't do anything stupid with their wonderful back catalogue of classical - though since it's the only arm of their music business that actually makes a profit they'd be stupid to.

Everyone read 'The Rise and Fall of the Record Industry' by Louis Barfe, and laugh.

Cras · **Joined:** 30th Mar, 2008 **Posts:** 49252

Heh. Record company lawyers have done all their Law-Fu training against old grannies whose grandkids once downloaded a Shampoo song. Good luck with this one, guys.

NervousPete · **Posted:** Fri Feb 05, 2010 0:09

Craster wrote:

Heh. Record company lawyers have done all their Law-Fu training against old grannies whose grandkids once downloaded a Shampoo song. Good luck with this one, guys.

*Double chortle*

Grim... · **Posted:** Fri Feb 05, 2010 0:12

Craster's just scared because his bosses are going to lose all their our bonus money.

MaliA · **Posted:** Fri Feb 05, 2010 0:14

Craster wrote:

Heh. Record company lawyers have done all their Law-Fu training against old grannies whose grandkids once downloaded a Shampoo song. Good luck with this one, guys.

One of my mates is going to work for them.

Be Excellent To Each Other

EMI post losses of £1.5 billion.
Ouch

Who is online

Be Excellent To Each Other

EMI post losses of £1.5 billion. Ouch

Who is online

EMI post losses of £1.5 billion.
Ouch